Mbuna

Sure It’s Legal … But Is It Right?

I think it's important to understand the bigger picture so here are a few things to think about.

1. The bank bailout was not evidence of moral hazard so much as the demonstration that moral hazard and financial immorality has won the war. Everything that has happened since then is justifiable proof that is so.

2. The financial sector is at the apex of the pyramid but you must add in all the other massive corporate sectors that helped make this happen not the least of which is the mainstream media and its culture. Then you have all the lobbyists who at this point really run the show in Washington DC.

From my point of view the fat lady has sung and we are on the verge of beginning to see just what the consequences of all this are.

Added Debt Won't Rescue the Great American Ponzi Scheme

Amen brother amen! The pain cannot be escaped. You can pay it now or pay it later. Guess which one will hurt more. I feel we are headed for a train wreck but may Grace and wisdom intervene for a more benign scenario.
(I especially liked the graph of deposits in failed banks as a % of nominal GDP.)